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Hello sir,
I’m slightly confused as to why operating leases are even considered leases as one of the pre-requisites for it to be a lease is that the ‘lessee’ has control over the risk and rewards(economic benefit?) and also how to differentiate operating leases and non-leases
Thank you
Hi,
In what way are you confused? Operating leases do not exist anymore in lessee accounting. Are you referring to the lessor accounting?
Thanks
yes from lessor perspective, i do not understand why operating leases are considered leases as the lessor retains control?
also; i’ve noticed there aren’t lectures for the current issues and ethics chapters.
will there be lectures uploaded?
thank you
@unfazed said:
yes from lessor perspective, i do not understand why operating leases are considered leases as the lessor retains control?It is a lease as it meets the definition of a lease as per the standard and we then need to account for the rental income received on an accruals basis.
Thanks
@unfazed said:
also; i’ve noticed there aren’t lectures for the current issues and ethics chapters.will there be lectures uploaded?
thank you
I doubt that there will be any lectures uploaded. Ethics follows on from previous papers and the work around current issues can be found elsewhere on the Internet.
Thanks
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